RE:Now Meg, CPG has broken out as well. BTE coming up soon IMOThanks for your posts! I agree, and glad to see every oil stock doing well, because it attracts attention to the sector every week, when one has a new high or a new dividend increase.
I was bracing myself for another huge selloff (in everything), after the last 4 Mondays tech selloffs dragged down the oil stocks badly. This Tues was interesting because the tech stocks kept taking a sh%% while oil stocks stayed green. This means NO ONE wants to part with their oil shares, not even the algos.
The last month or two just shook out the weak hands, nerds who are happy to sell for $6 or whatever and re-buy tech stocks. This makes a strong floor above $6 probably.
Most oil stocks were stuck in a trading pattern for 3 months (SGY, OBE, BTE, MEG, CPG, WCP, VET). The ONLY thing preventing them from rocketing higher was the overall bearish market sentiment, risk of recession, huge inflation, tech stock crash, more China lockdowns, Ukraine war, monkeypox, etc. They held their ground even in horrible market sentiment. I’m actually used to these 10-15% crashes in oil stocks every few months, and never use a stop-loss because I think the algos ‘try’ to trigger a huge selloff to trigger people’s stop-losses. Just wait 4 days and you got the losses back easily and eventually a big +7% on a random day. And I’m too slow and dumb to trade in and out.
I think this is how technical analysts read their charts as a form of sentiment. With all the bad news in the market, huge tech selloff, risk of recession, and NOW no one is selling their oil shares. So companies like BTE are probably stable at $6.50, all the weak hands are out, new buyers are in with a cost-base of around $6, and hopeing to get a double in the next year. Still risky though but def worth the risk. Haha maybe soon the tech bros will buy oil stocks, trying to get their -75% losses back!